Banks working closely with UK agencies to recover dues from Mallya: SBI MD

The State Bank of India (SBI) hopes to recover a significant amount of debt from Vijay Mallya after a UK court ruled in favour of Indian banks by granting permission to local authorities to enter the estate of the fugitive Indian businessman and seize possessions.

“Going by the assets that we have we feel that it will be significant amount of debt, if not the whole amount,” said Arijit Basu, a managing director with SBI. The outstanding exposure of the consortium of 14 banks led by SBI, the largest bank in the country, to the now defunct Kingfisher Airlines account is Rs 7,000 crore. SBI has an exposure of Rs 1,458 crore, followed by IDBI Bank (Rs 728 crore), Punjab National Bank (Rs 710 crore), Bank of India (Rs 575 crore) and Bank of Baroda (Rs 538 crore).

So far the consortium has recovered Rs 963 crore from auction of Mallya’s Indian assets, said Basu. The consortium met most recently on May 30, after which the SBI appointed a lawyer in London. Basu said the concerted efforts of the banks resulted in the landmark order of the UK high court.

“We have been able to come this far because of efforts that were taken in a very coordinated manner by all agencies including the government,” he said. “With the effort that we have made, we have got worldwide freezing order.” He said that the banks were working very closely with all agencies and the lawyer in London to ascertain how the high court enforcement order could be enforced. SBI has appointed a valuer to assess the value of Mallya’s assets.

The order grants permission to the UK high court enforcement officer to enter Mallya’s properties in Hertfordshire, near London. “The high court enforcement officer, including any enforcement agents acting under his authority, may enter Ladywalk, Queen Hoo Lane, Tewin, Welwyn... and Bramble Lodge, Queen Hoo Lane, Tewin, Welwyn, including all outbuildings of Ladywalk and Bramble Lodge to search for and take control of goods belonging to the first defendant (Mallya),” said the June 26 order by Justice Bryan.

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